The present invention generally concerns systems and methods for auctioning access to securities research resources.
In the securities research industry, so called “sell-side firms” provide, among other things, research regarding securities (such as stocks or bonds) to so-called “buy-side firms,” i.e. institutional investors such as mutual funds, hedge funds, pension funds, etc. Typically, particularly for equity research, sell-side firms employ a number of analyst teams that analyze equity securities in different industry sectors and/or geographic regions. The analyst teams typically include a primary analyst and several research associates, though some teams may have other positions as well. These research teams generate numerous different types of research touch points for consumers of the research (e.g., the buy-side firms). The research touch points may include research reports (e.g., published electronic or hard copy reports), one-to-one telephone calls or meetings with contacts at the buy-side firms, tailored or blast e-mails and voicemails to such contacts, as well as other events such as seminars, conferences, corporate road shows, and meetings with corporate management.
In addition, different buy-side clients may seek and/or be provided with different levels of research services from the sell-side firm. For example, some buy-side clients of a sell-side firm may be entitled to participate in certain events, such as corporate road shows or corporate management meetings with the primary analyst in attendance, while other buy-side clients may not.
Historically, sell-side firm analysts have in large part determined the level of service received by a particular buy-side client firm. However, this may not result in an efficient allocation of resources by the securities research department.